90
THE SENATE                           S.C.R. NO.            S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING RELEASE OF ALL RESTRICTED GENERAL FUNDS DUE TO THE
    BUDGETING OF FEDERAL IMPACT AID RECEIPTS DIRECTLY TO THE
    DEPARTMENT OF EDUCATION AND THAT THE BUDGET FOR SCHOOL
    OPERATIONS NOT BE REDUCED BY FEDERAL IMPACT AID.



 1        WHEREAS, the purpose of Federal Impact Aid is to
 2   compensate a local school district for burdens placed on its
 3   resources by Federal activity, either through Federal ownership
 4   of property in the district or through the addition of
 5   "federally-connected children" to the number of students that
 6   it would ordinarily need to educate; and 
 7   
 8        WHEREAS, Federal Impact Aid is supposed to be paid
 9   directly to eligible school districts and become part of their
10   general operating funds; and 
11   
12        WHEREAS, Hawaii manages Federal Impact Aid as a
13   reimbursement for general funds expended for federally-
14   connected students and currently, Federal Impact Aid is
15   appropriated at $19 million in the state budget and is used as
16   a means of finance adjustments for a portion of salaries and
17   fringes for regular and special education teachers; and
18   
19        WHEREAS, subsequent Federal Impact Aid receipts in excess
20   of the $19 million appropriation are accompanied by a
21   corresponding amount of restricted general funds to the
22   Department of Education; and
23   
24        WHEREAS, the Department of Education must petition the
25   Governor to have the restricted amount of general funds
26   released; and
27   
28        WHEREAS, as a result, public schools do not directly
29   benefit from any of the Federal Impact Aid that has been
30   awarded to Hawaii; and
31   
32        WHEREAS, the 1998-1999 Federal Impact Aid receipts were
33   mistakenly undercounted by the Federal Department of Education
34   by $16 million, thus, the 1998-1999 Federal Impact Aid receipts

 
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                                  S.C.R. NO.            S.D. 1
                                                        
                                                        

 
 1   will be $16 million in excess of the $19 million budgeted to
 2   the Department of Education; and
 3   
 4        WHEREAS, the Department of Education will subsequently
 5   have $16 million in general funds restricted; now, therefore, 
 6   
 7        BE IT RESOLVED by the Senate of the Twentieth Legislature
 8   of the State of Hawaii, Regular Session of 1999, the House of
 9   Representatives concurring, that the Governor is requested to
10   release all restricted general funds due to the budgeting of
11   Federal Impact Aid receipts directly to the Board of Education
12   and the Department of Education; and
13   
14        BE IT FURTHER RESOLVED that the Federal Impact Aid should
15   be regarded as supplemental unbudgeted funds and, as such, no
16   general funds should be restricted for excess Federal Impact
17   Aid that was previously unbudgeted; and
18   
19        BE IT FURTHER RESOLVED that the Department of Education
20   consider utilizing Federal Impact Aid funds for facilities
21   repair and improvement, in addition to supplementing teachers
22   salaries; and
23   
24        BE IT FURTHER RESOLVED that the Department of Education,
25   after consultation with the Governor, submit a report on the
26   status of Federal Impact Aid receipts, and the breakdown of how
27   the funds were spent to the Legislature, twenty days before the
28   convening of the Regular Session of 2000; and
29   
30        BE IT FURTHER RESOLVED that certified copies of this
31   Concurrent Resolution be transmitted to the Governor, the
32   Superintendent of Education, the Chairperson of the Board of
33   Education, and each member of Hawaii's Congressional
34   Delegation.